Analysing the economics of wind power based on Locational Marginal Prices using restructured power systems

This paper focuses the different approaches which enable wind power market to improve reliability to integrate competitive power grids economically. Wind mills are difficult to schedule due to variability and unpredictability. Now a day´s Wind power market is considered as Price Taker due to the Transmission Congestions and line losses. After some decades, the loss of annual production of wind plants will result in the increased usage of hydro, biomass and solar power plants which will affect the green environment. This paper demonstrates the solutions by two sections. Firstly, the overview, definitions, characteristics, settlements, observations and examples for the Locational Marginal Prices or LMPs for particular generators that are developed on the basis of congested and uncongested case. Secondly, calculation for economics of power generation based on producers (supply) and consumers (demand). This analysis will be provided more information to the present conditions of wind power markets with the help of MATLAB programs.